Crude oil surges 7 percent in a day after six year low
by Daily Sabah with Agencies
Jan 15, 2015 - 12:00 am GMT+3
by Daily Sabah with Agencies
Jan 15, 2015 12:00 am
U.S. crude oil has surged, posting its biggest one-day percentage gain in more than two years in New York trading on Wednesday after Brent Crude fell 54 cents to $46.05, the lowest since April 2009.
The price of oil surged, despite a large increase in U.S. oil stockpiles, on a weaker dollar and traders' expectations that oil had fallen too far recently. Benchmark U.S. crude rose $2.59 to close at $48.48 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $2.10 to close at $48.69 in London.
Oil slumped almost 50 percent last year, the most since 2008, as the Organization of Petroleum Exporting Countries resisted calls to cut output even as the U.S. pumped at the fastest rate in more than three decades. WTI briefly traded higher than Brent yesterday for the first time since July 2013, a signal that Saudi Arabia's strategy of curbing shale output growth is working.
The World Bank lowered its 2015 and 2016 world economic growth forecasts on Tuesday, reinforcing worries about sluggish expansion in energy demand.
Oil prices that have fallen by about 60 percent since June are wreaking havoc on economies that depend on commodities exports.
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